Denver’s city auditorwarned today that oversight of the majority of the city’s payroll and benefits was “seriously flawed.”
The Career Service Authority system rules for non-uniformed employees impact more than half a billion dollars of the city’s budget each year, and auditor Dennis Gallagher’s findings come at a time the city is trying to close a $100 million budget deficit and restructure its finances.
For example, the authority sets prevailing wage rates and establishes criteria for how raises are determined.
“This is one of the largest cost centers in the City but our investigations have determined that it is not only flawed and poorly governed but completely unaccountable to the Mayor, the City Council, my Office or the taxpayers,” Gallagher said in a prepared statement. “That is a prescription for disaster and that is what I believe we have seen.”
The CSA said the agency “is extremely disappointed in the Auditor’s decision to professionally malign the credibility and reputation of our volunteer board, which is nominated by the Mayor and confirmed by City Council.
“The allegations made in the Audit Alert are based on incomplete audit findings, misinterpretation of legal authority and misunderstanding of the City charter. The CSA Board will respond accurately and swiftly in accordance with the Auditor’s own internal processes.”
Gallagher’s alert was pitched to catch the attention of Denver’s next mayor and of the task force Mayor Guillermo “Bill” Vidal charged with fixing the “structural problems” facing the city budget responsible for yearly revenue shortfalls.
A pair of audits of the agency are to be released this summer.
The auditor expressed concerns that CSA’s governance is lackluster and potentially inefficient.
Investigators found that though CSA pay system is to be based on merit, interviews with board members and staff found conflicting or inconsistent definitions of what components defined a merit-based system.
Gallagher also took issue with the board’s expertise. The auditor said there is no requirement that the board members have human resources experience or legal backgrounds, yet they are tasked with approving complex human resources policies and even quasi-judicial functions of employment law.
For example, the board is the arbiter of appeals by employees who dispute disciplinary action or termination.
Chuck Plunkett: 303-954-1333 or cplunkett@denverpost.com
